Bargaining can reap big bucks

Consumer Reports'' recent national survey found that just 48 percent of shoppers tried bargaining for a better deal on everyday goods and services in the past three years, down from 61 percent in 2007.

But if you're chicken, you lose. Eighty-nine percent of those who haggled were rewarded at least once.

Successful furniture hagglers saved $300 on average, as did those who questioned a health-related charge. Those who challenged their cellphone plans saved $80.

Savvy negotiators know that politeness, friendliness and a smile are harder to resist than tough talk.

"A my-way-or-the-highway approach limits you, because if you then reduce your demands, you run the risk of losing face," says Steven Cohen, president of Massachusetts-based Negotiation Skills, which teaches corporate clients how to sharpen their bargaining techniques. "Negotiation isn't a competitive sport."

Consumer Reports suggests these other tips for smart bargaining:

? Assume everything is fair game. Retailers drop prices all the time and call it a sale. "It's not in the seller's best interest to charge one price to all customers," says Stephen Hoch, a marketing professor at the Wharton School of the University of Pennsylvania. "You charge different prices to different people based on their willingness to pay. As long as you sell something for more than your cost, you are making a profit."

? Don't be intimidated by a title. Hoch says that many people are reluctant to confront doctors or lawyers. But Dr. John Santa, director of the Consumer Reports Health Ratings Center, says that almost everyone in health care - whether physicians, hospitals, labs or imaging departments - will eventually accept less if you dispute an out-of-pocket charge.

? Be willing to bargain for big bucks. You can't win if you don't try. A 23-year-old college grad (he didn't want his name used) was accepted into several law schools and was offered generous scholarships by some. As his commitment deadline loomed, two of the schools increased their offers, but his first choice didn't. He approached the admissions officers of his top pick, told them that another school had upped the ante, and asked for more ($40,000 a year), knowing it would never agree to that amount. The school, which had initially offered $30,000, countered with $33,000, and they sealed the deal.

? Give sellers a reason to negotiate. If you're a loyal customer, say so. If you're at a mom-and-pop store because you like to shop locally, say that. Tell the car dealer if you intend to bring your vehicle back for servicing.

? Ask open-ended questions. It's easy to be turned down if you ask a yes-or-no question. Say you want a 60-inch television but can afford only a 52-inch model. Cohen suggests: "I've got the perfect space for a 60-inch TV, but the financial issue is a challenge. How can you help me?"

? See whether the seller is anxious. Anxious sellers might include someone who has bought a new house but hasn't sold the old one or a car dealer with a car that has sat on the lot for months.

? Decide on a fair price. Research the cost of any product before buying, and use it to determine what you're willing to pay. Print out or take screen shots of website pages or request written quotes from competitors. If you can't get a discount, ask about free shipping, delivery or installation.

? Show your knowledge. If you're versed in Federal-style furniture, are geeky about gaming systems or know the ins and outs of foreign coins, share that expertise and curiosity with the seller. You'll come across as a qualified buyer.

? Find flaws. If you see a sweater with a smudge or a dishwasher with a ding, point it out.